Coliseum Capital Management buys $3.07 million in Owens & Minor stock

Coliseum Capital Management, LLC, a notable ten percent owner of Owens & Minor Inc. (NYSE:OMI), has recently increased its stake in the company through a series of stock purchases totaling $3.07 million. The transactions occurred over three consecutive days, with the firm acquiring a total of 410,000 shares.

On April 8, Coliseum Capital Management purchased 105,000 shares at a weighted average price of $7.96. The following day, April 9, saw an acquisition of 225,000 shares at an average price of $7.39. The buying spree concluded on April 10, with the purchase of an additional 80,000 shares at an average price of $7.19. These purchases were made at prices ranging from $7.19 to $7.96 per share, with InvestingPro analysis indicating the stock is currently undervalued based on its Fair Value assessment.

Following these transactions, Coliseum Capital Management's total holdings in Owens & Minor increased to 11,562,955 shares. The stock purchases reflect the firm's continued confidence in the company's potential.

In other recent news, Owens & Minor Inc. reported an earnings per share (EPS) of $0.55 for the fourth quarter of 2024, surpassing the forecasted $0.54. Despite this, the company's revenue fell short of expectations, recording $2.69 billion against a projected $2.73 billion. Owens & Minor has secured $1 billion in senior secured notes to fund its acquisition of Rotech Healthcare Holdings Inc., with the transaction expected to close by April 2025. The company plans to use the funds, along with cash and borrowings, to finance the acquisition and repay Rotech's debt. S&P Global Ratings revised its outlook for Owens & Minor to negative, citing higher-than-expected leverage due to the Rotech acquisition, although the company's ratings were affirmed. The outlook suggests that Owens & Minor's leverage is expected to remain above the 4.5x downgrade threshold through 2025. Additionally, the company has announced a $100 million share repurchase program, aiming to optimize its capital structure. These developments reflect Owens & Minor's strategic initiatives to expand its market presence and manage financial obligations.

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